Nextpower Inc.

Fourth-quarter revenue was $881 million, down 3% sequentially, and management said it was helped by North America strength and TrueCapture, partly offset by roughly a 300 basis point reduction from the new Middle East JV not being consolidated. Full-year FY2026 revenue increased 20% to approximately $3.56 billion. Q4 adjusted EBITDA was $202 million with a 23% margin, and full-year adjusted EBITDA was $854 million. Adjusted free cash flow was $154 million in Q4 and $514 million for FY2026, with about $1.1 billion in cash and cash equivalents and no debt. For FY2027, revenue is guided to $3.8 billion-$4.1 billion, adjusted EBITDA to $825 million-$900 million, Q1 revenue to low-single-digit sequential growth, gross margin to the low 30s, capex to $75 million-$100 million, adjusted free cash flow to $450 million-$500 million, and OpEx to 10.5%-11.5% of revenue. Management also said it plans to invest approximately $130 million to accelerate power conversion, including $50 million of incremental COGS and OpEx and up to $80 million under the asset purchase agreement.

Daniel Shugar’s tone was confident and expansionary. He emphasized that Next Power is seeing a “flight to quality,” record backlog, and increasing adoption of its broader platform beyond trackers, including foundations, eBOS, steel frames, and now power conversion. He said the company is “increasingly confident” it can exceed its previously disclosed 2030 revenue outlook, while acknowledging that near-term investment will pressure profitability.

Chuck Boynton focused on the financial outperformance and the 2027 framework. He highlighted Q4 gross margin strength from tariff recovery, record TrueCapture, and U.S. revenue concentration, partly offset by freight/logistics headwinds tied to Middle East disruptions. He also noted the balance sheet ended with about $1.1 billion in cash and no debt, the company achieved an investment-grade rating, and share repurchases began under the $500 million authorization. For FY2027 he guided to low-30s gross margin, low-20% adjusted EBITDA margins, OpEx of 10.5%-11.5% of revenue, and $450 million-$500 million of adjusted free cash flow.

Analysts pressed on whether tracker growth can sustain and how much of FY2027 growth comes from the U.S. versus international markets; management said tracker revenue should grow with or faster than the industry, bookings and backlog are at record levels, and U.S. demand remains strong while Europe and other regions are also active. Questions on the power conversion acquisition centered on timing, TAM, and margins; management said bookings should start in the near term, small revenue is expected later this fiscal year, the acquisition accelerates time to market rather than changing TAM, and margins should ultimately be higher than the core tracker business. Management also said tax equity is not currently a bottleneck and that the Middle East conflict is creating a structural tailwind for solar demand through higher fossil fuel and LNG costs.